Q. Once my offer to purchase a house is accepted, what happens?
A. Once an offer has been presented by a buyer and accepted by the seller, usually in the form of a written binder prepared by a real estate broker, the seller’s attorney, would prepare the contracts for the transaction. The contracts are then sent to my office and I would review them to make sure you are legally protected. Then I would meet with you at my office, and assuming all is in accordance with your wishes, you would then sign the contract, along with leaving the deposit, and I would return the contracts to the seller’s attorney. Then the seller would sign and return a fully signed contract back to my office, at which time the transaction would be deemed “under contract”.
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Q. How much should a buyer put down at contract?
A. It is customary that between 5 to 10% is put down depending on the price and the circumstances.
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Q. Does the deposit check have to be a bank or certified check?
A. No, a personal check is all that is generally required for the deposit. However at closing any funds brought buy a purchaser must be in the form of a bank or certified check.
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Q. When should I do an engineers inspection?
A. If an inspection is desired by you, the time to perform said inspection would be before you come into my office to sign the contracts. This will then allow my office to include into the contract any necessary repairs that need to be addressed. Please note: Upon receiving the engineers report, please have a copy forwarded to my office.
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Q. When should I do a termite inspection?
A. Some professional engineers perform a termite inspection with their services, however if this is not done you will usually have 2 weeks after the contract to perform the inspection.
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Q. When is the closing?
A. The contract will have an “on or about date”, usually about 60 days from contract, though this can be negotiated longer or shorter. This will allow you to attain your mortgage and run a title search against the property. Once your mortgage is approved and a title search has been performed, a closing is coordinated on a day that is good for all parties. An “on or about” date gives either party the flexibility of closing within about 30 days of the “on or about” date.
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Q. How long will I have to get my mortgage, and what if I am denied?
A. The customary time to obtain a mortgage is between 30 and 45 days. If needed, an extension can be requested of the seller. In the event that your mortgage is denied, most contracts call for the deposit to be returned and the deal to be cancelled.
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Q. What are my anticipated expenses?
A. At the closing, you will pay the following:
- Mortgage costs (which includes: points, bank fees, short term interest, escrows, and bank legal fee)
- Title costs (which include title insurance, recording fees and fees for municipal searches)
- New York State Mortgage Tax-which is approximately ¾ of 1 percent of your mortgage amount.
- Title closer fee
- Legal fee
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Q. What about taxes the seller has paid for in advance?
A. The usual tax adjustment to the benefit of a seller is for any taxes that they have paid for in advance from the date of the closing until the end of the tax period. There also can be an adjustment for any oil that is in the tank, if proof is provided at closing from the oil company.
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Q. Where is the closing?
A. Usually at the buyers lending institution, unless it is all cash, then it would be at the sellers office.
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Q. What is the legal fee?
A. The legal fee that is charged by my office for the closing, which includes preparation of the contract, review of the title, coordinating and appearance at the closing is $850.00 and it is payable at the closing.
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Q. Can I contact the law office of Michael Croston regarding any questions I have?
A. At the law offices of Michael J. Croston, anyone can have a free consultation, either in person or on the phone, regarding any of the above issues. In fact, I would recommend that once you decide to purchase, to please give me a call at 631-474-0900 so that we could further discuss the above and have all matters in order to insure all concerns of yours are included in the contract.
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